Competitors for Sierra Logic in this space include newcomer Ario Data Networks, which is in the process of completing a $5.9 million round of funding to add to its $27 million; Marvell Technologies; and SiliconStor. Clearly, competition is taking shape among FC-to-SATA bridging components.

Still, the price Emulex paid for Sierra Logic seems a bit high considering Sierra Logic's current revenue stream, but Emulex is banking on the continued growth of low-cost drives -- and it needs to broaden its product portfolio.

Our latest survey shows growing demand, fixed budgets, and good reason why resellers and vendors must fight to remain relevant. One thing's for sure: The data center is poised for a wild ride, and no one wants to be left behind.